Camping World Holdings, Inc. Q2 FY2026 earnings call

• Market Position & Share Gains

• Gained new RV unit market share through May 2026, exceeding the prior record 29% U.S. new RV market share set in May 2025. Share gains were concentrated in the higher-priced fifth wheel and motorized segments, driving a 13% YoY increase in new vehicle average selling price (ASP).
• Same-store used vehicle unit sales grew over 5% YoY, marking continued used segment share gains amid ongoing industry weakness for new RVs.

• Inventory Optimization

• New RV inventory: Total units down 17% YoY, prior model year exposure reduced to ~1% from over 6% a year prior, and new vehicles aged over 365 days cut by over 60% YoY. The company notes it now holds its best current model year new inventory position since 2020.
• Used RV inventory: Total units down 18% from end-2025, average inventory age down over 30% from end-Q1 2026, and the share of used inventory aged over 180 days down nearly 50% from Q1. Total inventory dollars down nearly 10% YoY, and floor plan borrowings reduced by ~$280 million from year-end 2025.

• Cost Efficiency & Technology Initiatives

• Management identified 20 specific initiatives expected to deliver $100 million in incremental annualized SG&A savings. $50 million of annualized run-rate savings are expected by end-2026, with the full $100 million implemented by early 2028.
• Deployed a new in-house enterprise-grade RV sales CRM, currently live at 5 locations with early results showing improved sales volumes, closing ratios, employee and customer satisfaction. Full rollout is expected to eliminate over $20 million in annualized costs. The company previously built an in-house CRM for Good Sam's extended service business.

• Operational Updates

• Good Sam completed its planned ERP overhaul on schedule in Q2, opening new B2B growth opportunities for the segment.
• Introduced a tiered service labor rate structure to improve affordability for customer-paid service work, which has driven higher service revenue and parts sales while keeping gross profit flat.

Camping World Holdings recorded total Q2 2026 revenue of $1.9 billion, a 2.1% year-over-year decline. Breakdown by segment: 1. New Vehicle: Revenue of $869 million (down 5% YoY), representing ~45.7% of total revenue, with unit sales down 16.4% YoY. Gross margin came in at 10.9%, down from 13.8% in Q2 2025. 2. Used Vehicle: Revenue of $580 million (up 1.4% YoY), representing ~30.5% of total revenue, with 5% higher unit sales YoY. Gross margin was 16.5%. 3. Good Sam: Gross margin expanded to 61.8% from 59.5% YoY, following the completed ERP overhaul completed in Q2. Total SG&A across the business was reduced by $26.6 million (6.1% YoY).

• Full-year 2026 U.S. new RV industry unit sales guidance revised sharply downward to 290,000 to 310,000 units, from the prior 325,000 to 350,000 unit range. Full-year used RV industry sales are expected to remain in the 715,000 to 750,000 unit range, maintained from prior guidance.
• Full-year 2026 adjusted EBITDA guidance revised to $230 million to $270 million, down from prior guidance, reflecting the continued softness in new RV demand. The low end of the range assumes 290,000 total new industry sales and 715,000 used industry sales, while the high end assumes 310,000 new sales and 750,000 used sales.
• Full-year 2026 new vehicle gross margin is expected to land between 11.5% and 12%, while used vehicle gross margin is expected to land between 17.5% and 18%. Margins are expected to improve sequentially from Q2 to Q3 2026, with only a mild seasonal step down expected in Q4 (far smaller than the 2025 Q4 margin decline) due to Q2 inventory cleansing.
• Of the $100 million in incremental annualized cost savings, ~$15 million of benefit will be realized in 2026 (mostly in Q4), with ~$35 million of annualized savings carrying over into 2027. Combined with the lapping of $35 million in 2026 first half inventory clearing costs, this creates ~$70 million of tailwinds for 2027 results.
• Leverage is targeted to fall into the mid-5x range by end-2026, with a long-term target of below 3.5x (and eventually below 3x).

• Sustained weakness in new RV demand driven by geopolitical tensions in the Middle East, elevated interest rates, high gas prices, reduced consumer confidence, and affordability constraints have pressured near-term sales and margins, with July 2026 seeing more acute demand softening than June.
• The broader RV industry still holds excess inventory relative to current demand trends, requiring continued promotional activity and margin pressure from competitors as they cleanse aged inventory over the coming months.
• Soft web traffic and showroom foot traffic persist industry-wide, with conversion only holding steady for customers that do visit showrooms, as affordability constraints limit participation from mainstream middle-class consumers.
• The reset of the Costco RV sales initiative means the program will not hit its original 2026 unit sales target (3,500 to 5,000 units), with meaningful contribution from the program now expected in 2027 rather than 2026.

Q: Beyond the lower industry unit outlook, what factors drove the downward EBITDA guidance revision, and what is the full-year margin outlook? / A: The main driver was lower-than-expected new unit volume and margin misses for both new and used inventory, which became apparent in May and June after a more stable April. New ASP held up better than expected, but used ASP came in ~$1,500 below expectations as consumers shifted to lower-priced towable RVs. Full-year 2026 new margins are expected to land between 11.5% and 12%, while used margins are projected between 17.5% and 18%. Margins will improve sequentially from Q2 to Q3, with only a mild seasonal step down expected in Q4. Used ASP is expected to rise slightly in H2 2026 to ~$30,000 full-year, as higher-ASP fifth wheel and motorized purchases pick up seasonally in the second half.

Q: What is driving the sequential margin improvement expected in H2, and how do you expect model year 2027 pricing to trend? / A: Margin improvement is driven primarily by the company's aggressive Q2 inventory cleansing, which has left it with a far fresher, healthier inventory position than most competitors, who are still working through aged stock. We intentionally accepted margin pressure in Q2 to clear old inventory and position for stronger H2 performance. Model year 2027 pricing is currently up ~1.7% compared to model year 2026 on a like-for-like basis, with any additional expected price increases expected to only add another 1.5% to 2%, keeping price increases below general inflation to support affordability.

Q: What drove Camping World's new market share gain despite broader industry weakness, and what needs to happen to spur industry demand longer term? / A: Share gains came from targeted share gains in the fifth wheel and Class C motorhome segments, where the company has launched new popular products (such as its new campsite reserve fifth wheel line, already the 7th most popular fifth wheel brand in North America) and effectively matched product to current demand from higher-net-worth consumers who remain active in the market. Longer term, the industry needs to focus on improving affordability and launching innovative new products to grow the overall total addressable market, which has been in decline for nearly six years.

Q: What areas will the $100 million in incremental cost savings come from? / A: The savings come from three core areas: technology consolidation, where the company is replacing expensive third-party licensed software and consulting arrangements with custom in-house tools like the new sales CRM; process centralization and labor efficiency, where improved technology enables simpler, more streamlined back office and front line operations; and procurement/third-party contract renegotiation, where the company is re-examining vendor agreements as they come up for renewal to identify lower-cost alternatives.